Bitrazzi
Bitcoin, Cryptocurrency And Blockchain News

Rumors of the SEC Pinning Down the SAFT ICO Framework Gains Ground in the Crypto Sphere

0

It is still unclear to most crypto enthusiasts as to whether the subpoenas sent out to by the US Securities and Exchange Commission are a move against fraudulent ICO issuers or just a move to end the booming ICO market altogether. As of this writing, reports indicate that the SEC might be on to some systemic investigation processes that target specifically ICO projects under the framework of Simple Agreements for Future Tokens (SAFTs).

With the crypto market gaining widespread adoption by the day, government regulatory bodies have been wary of this booming industry that has attracted millions in funding and investment, especially through ICOs and TGEs.

What Is SAFT and why Is the SEC After It?

The SAFT framework was developed in October last year (2017) as a broad concept that would enable token issuers to remain friendly to regulatory and securities laws. The concept was developed by attorney Marco Santori in partnership with the Filecoin team as a pilot demonstration of how the framework operates after a token platform is complete for distribution.

According to an unidentified source from CoinDesk,

The SEC is targeting SAFTs. The new approach of the SEC is to consider tokens as both utility and security at the same time, meaning a token can bring utility to a platform but at the same time can be considered as a security if you sold it to parties that mainly looked for profit on its increase in value.

However, even as more rumors of the SEC going after ICO token issuers spread, there is still no official response from either ICO groups or the Securities and Exchange Commission itself. This has led to on-lookers speculating that the issuers of tokens (even with SAFT enabled ICOs) might be in trouble with Uncle Sam.

Are ICO Issuers in Trouble?

To really know whether issuers are in hot water with the regulator, it is first important to understand the requests on the subpoena issued by the SEC. Whether the SEC is looking to get a handle and regulate the booming crypto industry or not is entirely guesswork at the moment. However, according to an attorney’s quote on CoinDesk, the details of the Subpoena are grim and ICO issuers should brace themselves for a long-running back and forth interaction with the SEC.

What Will the Fate of the ICO Investors Be?

Well, for investors in the ICO space, the uncertainties of the probe will definitely have an effect on the ICO and crypto space. Most enthusiasts look at the move by the SEC as a development in the right direction in the highly risky and highly volatile crypto space. Other reports also indicate that the SEC might go ahead and implement restrictive regulations on ICOs and probably offer better protection of funds for investors.

What do you think will happen, given the subpoenas issued by the Securities and Exchange Commission? Share your thoughts with us in the comments section.

Comments